Resource of the Day — VURU

There are no shortage of competitors in the world of online stock screening and analytic services. Services like YCharts and Finviz seemed like fantasy when I first started trading and are now taken for granted. While those services are great, I’d encourage you to take a look at a relative newcomer called VURU.

VURU is very similar to YCharts. Both have really appealing layouts and easy to understand features. VURU is more geared to the value investor out-of-the-box, although YCharts offers similar value investing analytic tools in its premium service. The most amazing thing about VURU is its simplicity. Basically, it does a cursory value-based analysis of a company in less than a second. VURU gives you a hypothetical growth valuation of a stock (using a Discounted Cash Flow model) and a stability valuation (using Earnings Power Value). It uses these calculations in combination with value staples such as the company’s economic moat and management performance to generate a company score out of 100. SO cool (but definitely not a substitute for your own in-depth analysis).

While I may not utilize VURU in my own trading, I would highly recommend it to do-it-yourself investors or people who are curious about the stocks their financial adviser has put them in. Usually, the lure of the simple “company score” model can get the casual investor into more trouble than without it. In this case, it’s comforting to know that VURU’s scores are based on the well-worn principles of Graham and Dodd as well as newer tenants of value investing, so they offer investors a very conservative approach. Check it out. It’s free!

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This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice.This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.